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<br />If under paragrapi: I$ hereof the Propert}- i~ ;a1ct or the Property is odu~rsrise aryuired by Lender. i.euder
<br />shall apply, uo later than immediately prior to th:~ slc of the °rapcrty or iT~ ucqui~iiion by Lender. ;:n} ('ands
<br />held by Louder at tdre time of applieatiat ss s crrr!it ag:aiaat tl:e sums ::er~urs~l h.' this Martgaye.
<br />3. Applieatioa of PaymenQs. Linless applicable lase proe•ides other^t i+c, ul1 p4symeuta received by Tender
<br />under the Not and paragraphs 1 and '? hereof shall be applied by Lender lir.at it; payment of umouuts payable to
<br />Lender hv= Brn•rasver under paragraph 2 hereof, then to interest payable on the dote and on Future Advances, if
<br />any, and then to fhe principal of the Notc and to the principal of Future Artvancrs, if atty.
<br />4. Charges; Liens. Borrower sitalf pay all taxes, assessments and ether charges, tines and iml}ositions attrib-
<br />utable to the Property which may attain a lrrmrity over ibis ~Iortgago, and ground rents, it any, at- Lender's
<br />~, option ir: the raanner;;ravidaut u=nd°.r I.ar =gra;.!: ? Izereof or I,=.• Bart~rwer making payment, when cane, direetl•~r t~
<br />~` the payee thereof. Harrower shall promptly furnish to Lender a!I notices of amounts due under this paragrapiz,
<br />~ and in the event. Rorrower shaft make payment directly-, Barross-er shall protxiptly furnish to Lender receipts evi-
<br />dencing such payments. Borrower sha11 promptI}• discharge any lien which has priority over this .Mortgage; pro-
<br />r- vided, that Borra;~er stall not be required to discharge any such lien so long as Borrower shall agree in writing io
<br />~ the payment of the obligation seeurecl by such lien in a manner acceptable to lender, ar shay: in gaud faith contest
<br />~ such lien by, or defend enforcement of such lien in• toga! proceedings which operate to peeve nt the enforcement of
<br />Tr the lien or forfeiture of the Property or cry part thereof.
<br />S, hazard Insurance. Borrower sha(i keel} kite imprarenzetrts nose existing ar hereafter erected on the Prop-
<br />erty insured againss toss by fire, hazards included within the term `extended coverage", and such other hazards as
<br />Lender may reouire and ;in such amounts and for such }=eriods ;.s Lender may require; provided. that Lender sha11
<br />not requim That the amount. of such coverage exceed that, amount of coverage required to pay the sums secured-by
<br />_ ibis Mortgage.
<br />The insurance carrier providing the insurance shall be chosen by Borrower subiect, in apnrovat by Lender;
<br />provided, that such approval shall net be unreasonably withheld. all premiums on insurance policies shad be paid
<br />at Lender's option in the manner provided under paragraph 2 hereof or by Borrower making payment, when due,
<br />directly to the insurance carrier.
<br />In the event any policy is not renewed on or before ten days of its expiration, the Lender, to protect
<br />its interest, may procure insurance on the improvements, pay the premiums and such stun shall become
<br />immediately due and payable with interest at the rate set forth in said note until paid and shaA be
<br />secured by this Mortgage. Failure by Borrower to comply mag•, at option of Lender, constitute a de#ault
<br />under the terms of this iViorigage.
<br />Ali insurance policies and renewals thereof shall be itr form acceptable to i.ender and shall inchrde a standard
<br />mortgage clause in favor of and in form acceptable to bender. Lender shall have fire right. to hold the policies and
<br />renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and ail receipts of paid pm-
<br />miums. In the event of loss, Borrower shall give prompt notice io the ittsuranee carrier and Lender, and Lender
<br />may make proof of Iris if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in •.. citing, insurance proceeds sha11 be applied to restoration or
<br />repair of the Property damaged, provided such restoration or repair is eeononaica}h- feasible and the security of
<br />this Mortgage is not thereby impaired. if such restoration or repair is not economically feasible or if the security
<br />of this Mortgage would be unpaired, the insurance proceeds anal 1 be applied is the sums scene-ed by this ~•iortgage;
<br />with the excess, if any, paid to Borrower. I.f the Property is abandoned by Hormwe>r or if Harrower fails to re;;pou-'
<br />to .-!.ender within 30 days after ranee by Lender is Borrower that the insurance carrier otters to settle s elairr, far
<br />insurance benefits, Lender is atrthoriaed to collect and apply the insurance proceeds at Lender's option either to
<br />restoration or repair of the Property ar to the suns secured by this Mortgage.
<br />Unless Lender and Horrower otherwise spree ir. writing, any such application of proceeds io principal shall
<br />not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change
<br />the amount of such installments.
<br />If under paragraph IS hereof the Propert' :,s squired lrv Lender, at} right, title and interest of Borrower in
<br />and to any insurance policies and ui anc'I to the proceeds thereof i to the extent of the sums secured by -this \iort-
<br />gage immediately prier to such sate or acquisition) resulting from damage io the Property prier to the sale or
<br />acqursttian shat pass to Lander.
<br />6. Preservation cad Maintenance of Property; Leaseholds; Coadomiaiums. Borrower shall keep the Prop-
<br />erty in good repair and shall not permit ar commit waste. impairment. ar ~.ieterioration of the Property and snail-
<br />, comply with the provisions of any }ease, if this 3lartgage ;s on a ieasehotd. If this Mortgage is on a condominium
<br />unit, Borrower shall perform all of Borrower's obligations under the declaration of condominium or master deed,
<br />the by-taws and regulations of the condominium pre;eet and constituent documents.
<br />?. Fsoteetion of Leader's Security. If Borrower faits to perform the covenants sad agreements contained in
<br />this ;Eortgage, or if any action or proceeding is commenced which materially adects Letder's interest in the Prog-
<br />arty, including, but not. limited to, eminent domain, insolvency, code enforcement, ar arrangements or proceed-
<br />ings involving a bankrupt or decedent, then Lender at lender's option, upon notice to Borrower, may make such
<br />appearances, disburse such Burns and lake such eerier, as is necessan• to protect Lender's interest, ir.aluding, but
<br />net limited ia, disbut•sem=??!?. of reasonable ativrney's f+~es and entry upon the Property to make repairi. Any
<br />amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall become additional indebt-
<br />ednesa of Borrower secured by this \iortgage. Unless Borrower and Lender agree to other terms of payment, such
<br />amounts shall be payable upon notice irana Lender to Borrower reouesting payment thereof, and shalt bear inter-
<br />est from the date of disbursement at the rate stated in the Note unless payment of interest at such rate would be
<br />contrary to applicable law, in wFiich event such amounts snail bear 'interest at the highest rate permissible by
<br />applicable law. Nothing contained i:a this paragraph "shall rc-quiro Lender to incur any expense or do any act
<br />hereunder.
<br />S. ia~p~C2iCa. Lender may make or cruse to he made reasonable entries upon, and inspections of the Prop-
<br />erty, provided that i;ender shall give Harrower notice lu~im• to any such inspection specifying reasonable coarse
<br />therefor related to Lender's interest in the Property.
<br />8, Condemaatioa, The proceeds of any an=ard er claim for damages, direcF. or consequential, in oannetstion
<br />will; any eondemnatian or ether taking of the Property, or part tltereaf, ar for conveyance in lieu of condemna-
<br />tign, are hereby a~.aigned and snail be paid to Lender.
<br />Irt the event of a total taking of the Property, the proceeds shalt be sl}plied to the sums secured by this Mort
<br />gam;-vrith tote mess, if say, paid to Borrower, In the event of a partial t-eking of the 2'raparty, unieas Harrower
<br />and Lender otherwise agree in tvriting,.there shall be applied to the sums secured by this I4lortgage such prapor-
<br />tion:of the proceeds as is equal to that proportion which the. amount of the sums secured 6t' this itiiorEgage imme-
<br />cliat~Iy prior to the date of tral:ing-bears to tl}e fair market value of the Properly immediately prior to the date of
<br />tAkits~, sxath the 8sza;-ere o: fire prtrreeda paid LU.$ormwer:
<br />Sfthe Propert}• is ahandonECt b~ Bormwet• or if-niter-notice by Lender to Borrower that the condemnor offers
<br />to rna7tre an award or settle a elairra for damages, Horraii=er fails to respond to Lender within 30 days of the date
<br />o€ such notice', Leniter is authorised=to collect and apjkly,the:-proceeds at bender's option either to restoration or
<br />repair of Ltie Property,ar to:the stuns secured. by this liortgsge.
<br />Unies$ Lender and Borrower-otherwise agree in writing, any such applieatian of proceeds to principal snail
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